This article first appeared in The Edge Financial Daily on September 14, 2018

KUALA LUMPUR: YLTC Sdn Bhd, a joint-venture (JV) company between Yee Lee Corp Bhd and Tasco Bhd, has secured a contract with Shell Malaysia Trading Sdn Bhd to provide supply chain services for Shell convenience retail outlets in Peninsula Malaysia.

YLTC yesterday signed the purchase contract with Shell Malaysia, said both Yee Lee, a fast-moving consumer goods manufacturer, and freight forwarder Tasco in stock exchange filings yesterday.

The contract is valid for a three-year period between Oct 1, 2018 and Sept 30, 2021, unless earlier terminated, and Shell may also choose to extend the contract for a further period of two years, up to Sept 30, 2023, the parties said.

“The contract is expected to contribute positively to the future earnings of Yee Lee,” the group said, although it did not disclose how much the contract was worth.

Meanwhile, Tasco said that the contract forms part of its ongoing diversification strategy into the retail and trading logistics segment, and is expected to contribute positively towards its earnings in the long term.

To recap, both Yee Lee and Tasco formed the JV company in December last year, with Yee Lee holding a 60% stake via a wholly-owned unit, Yee Lee Trading Sdn Bhd. Tasco holds the remaining 40% stake in the JV company.

Shares in Yee Lee rose one sen or 0.47% to RM2.12 to give the group a market capitalisation of RM406.2 million while shares in Tasco gained two sen or 1.27% to close at RM1.60, leaving the group with a market value of RM320 million.